The meeting was told the once-thriving pub had been losing money because of poor management and had been put on the market by brewery, Greene King. In 12 months only one landlord expressed an interest but was unable to raise the finance.

It was bought by Annie Robb, who said she wanted to convert it into homes for herself and her elderly mother-in-law. The scheme attracted 83 letters of objection, with Alfold Parish Council also opposing it.

Villagers formed the Alfold Village Community Group (AVCG) Ltd, took legal advice and issued a pre-action protocol letter to Waverley Borough Council.

Such letters permit groups to identify the issues in dispute and establish whether legal proceedings can be avoided.

The letter sets out the grounds on which AVCG is challenging the decision of Waverley to granting a change of use for The Crown. It claimed the planning officer’s report was misleading.

Objectors also claim Waverley’s decision failed to properly present the council expert’s view on viability, failed to have regard to the continuing viability of the property, failed to address whether advice had been sought from relevant organisations and failed to provide material information provided by members of AVCG.

A Waverley Borough Council spokesman said: “We can confirm the council has received a pre-action protocol letter from solicitors acting for the Alfold Village Community Group.

“We are considering its contents and will respond in accordance with the protocol requirements.”

An AVCG spokesman said if, after receipt of the letter, the council refused to quash planning permission, the next stage was judicial review.

The spokesman said: “It is also noteworthy that as a result of the council’s decision, the pub, having been purchased for between £300,000 and £350,000 in 2012, is on the market as a development opportunity with planning permission to convert into two dwellings for £695,000, a nice profit.

"The financial viability of The Crown should form a significant part of the planning officer’s conclusion and recommendation to planning committee members.

“Although the council sought independent expertise to review the figures and opinions provided by the applicant, relevant sections of the independent expert’s comments were omitted from the officer’s report to councillors.

"The committee was told The Crown was not viable but on closer reading, the council’s independent expert’s report was ambiguous in this regard. It appears the planning committee was misled.

“Significantly, the day before the meeting and on the day of the meeting, additional information was provided by Alfold residents to officers.

“This was missing turnover figures from tenants and information on a prospective buyer who intended to re-open the property as a pub. The officer’s report made no reference to it and neither were committee members made aware of the detail.

“At the meeting the officer noted information had been received but said officers assessed the information and felt it did not alter the recommendation to approve.”